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The Effect of Job Flexibility on Female Labor Market Outcomes: Estimates from a Search and Bargaining Model

In this article, we develop a search model of the labor market in which jobs are characterized by work-hours flexibility. Workers value flexibility, which is costly for employers to provide. We estimate the model on a sample of women extracted from the CPS. The model parameters are empirically identified because the accepted wage distributions of flexible and non-flexible jobs are directly related to the preference for flexibility parameters. Results show that more than one-third of women place a small, positive value on flexibility. Women with a college degree value flexibility more than women with only a high school degree. Counterfactual experiments show that flexibility has a substantial impact on the wage distribution but a negligible impact on the unemployment rate. These results suggest that wage and schooling differences between males and females may be importantly related to flexibility.

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Paper provided by Georgetown University, Department of Economics in its series Working Papers with number gueconwpa~11-11-04.

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Date of creation: 04 Jan 2011
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Handle: RePEc:geo:guwopa:gueconwpa~11-11-04
Contact details of provider: Postal: Georgetown University Department of Economics Washington, DC 20057-1036
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Fax: 202-687-6102
Web page: http://econ.georgetown.edu/
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Order Information: Postal: Roger Lagunoff Professor of Economics Georgetown University Department of Economics Washington, DC 20057-1036
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  12. Luca Flabbi, 2004. "Gender Discrimination Estimation in a Search Model with Matching and Bargaining," Working Papers gueconwpa~04-04-08, Georgetown University, Department of Economics.
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  16. Zvi Eckstein & Kenneth I. Wolpin, 1999. "Estimating The Effect Of Racial Discrimination On First Job Wage Offers," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 384-392, August.
  17. Hans G. Bloemen, 2008. "Job Search, Hours Restrictions, and Desired Hours of Work," Journal of Labor Economics, University of Chicago Press, vol. 26, pages 137-179.
  18. Flinn, C. & Heckman, J., 1982. "New methods for analyzing structural models of labor force dynamics," Journal of Econometrics, Elsevier, vol. 18(1), pages 115-168, January.
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  22. Usui, Emiko, 2012. "Gender Occupational Segregation in an Equilibrium Search Model," CIS Discussion paper series 560, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
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